Why Title Insurance?
People often ask why they need title insurance or how title failure occurs. An owner’s policy indemnifies the insured in the event of hidden risks, including:
- Documents that were executed under false, revoked or expired powers of attorney
- False impersonations of the true property owner
- Undisclosed heirs
- Improperly recorded legal documents
- Prescriptive rights of another that did not appear on record or that were not disclosed by survey
- Defective acknowledgments due to improper or expired notarization
- Corporate franchise taxes as liens on corporate real estate assets
- Gaps in the chain of title
- Mistakes and omissions that result in improper abstracts
- Forged deeds, mortgages, wills, releases of mortgages and other instruments
- Deeds by minors
- Deeds that appear absolute, but are held to be equitable title
- Inadequate legal descriptions
- Errors in tax records
- And more…
